P83 entertainment/hotel plan in Peoria closer to reality

With new partnership in place, construction could begin in April

by Sonu Munshi - Sept. 12, 2012 09:22 AMThe Republic | azcentral.com

Peoria wants to create a vibrant entertainment district and boutique hotel unlike any in the West Valley by the time Super Bowl XLIX hits Glendale in three years and the Valley is deluged with visitors.

The city has been working with developers for more than a year to expand 83rd Avenue's restaurant row, which includes the city's spring-training ballpark and a dinner theater. The city recently informally christened the area P83 and seeks to build buzz.

Peoria developer Mike Oliver envisions an eight-story hotel with a rooftop lounge, boutique shops, trendy restaurants and upscale apartments on what now is ballpark parking lots.

Oliver's plan to start construction last summer vaporized after losing an investment partner. Now, he has teamed with Scottsdale-based Chandler Hotel Group. They formed Peoria Sports Park LLC and hope to break ground by April.

Before that, developers and Peoria officials must hammer out a deal for the project on 17 acres of city-owned land.

To jump-start the $130 million project, the city would lease land to the developers and pay for a roughly $30 million parking garage to make up for the lost stadium parking. Details must be worked out as part of the talks.

Features

The developers want to distinguish their project from Glendale's Westgate City Center or Arrowhead Towne Center.

They're looking to the Grove in Los Angeles for inspiration.

The popular Grove is a celebrity-sighting spot with a trolley to take visitors around the complex.

There was no talk of Hollywood celebs or a tram in Peoria, but the idea is to create a pedestrian-friendly destination with live music and unique entertainment such as short 3-D shows flashed on the exterior of a building. Think sea life splashing out of the ocean and over visitors' heads. During spring training, the show could take on baseball themes.

"It's truly going to be a project that will be the talk of the town," Oliver said.

Much of the project would emphasize light and height.

"These two features create atmosphere, which in turn creates excitement," Oliver said.

He compared it to a Disney World-type experience at night, lit up with music and a family atmosphere.

A bowling alley also is being considered, along with eateries. Oliver said they are targeting a mix of known, upscale restaurants and local offerings, from sushi to breakfast.

Don't expect an Olive Garden, he said.

The hotel would be critical as it would draw foot traffic to the retail shops and create a 24/7 atmosphere.

"We're looking at up to 200,000 people a month out there just because of the hotel," Oliver said.

Zoning is in place for as much as a 10-story hotel, but Jared Chandler, whose group has properties across the country, expects to stick with eight stories for now.

The plan is to build a boutique hotel, a unique brand with the Hilton name attached to it. Chandler compared it to theWit in Chicago, which is associated with Doubletree of Hilton.

Chandler said the hotel group was interested in the project in part because of the potential to contract with the San Diego Padres and Seattle Mariners, the city's two spring-training teams, as it did in Scottsdale with its Hampton Inn property near Salt River Fields at Talking Stick.

Peoria economic-development Director Scott Whyte and Oliver touted the new partnership with Chandler for his hotel background, which would mean they don't have to look for an anchor hotel. The developers hope to break ground on the hotel and parking garage at the same time, followed by the apartments and retail shops.

Changes

The city's obligation would be to build the parking garage to replace the lost surface spaces. However, the city now thinks it can accomplish this with one structure instead of two. The parking garage could go up along Mariners Way.

The city still is in talks with the Mariners and the Padres about the parking garage's placement and height, and how it would serve fans during spring training.

Peoria would use Municipal Development Authority bonds to raise about $30 million for construction, and pay it off with the city's half-cent sales tax.

City officials say the project would require no significant improvements on 83rd Avenue for increased traffic.

Peoria leaders initially had hoped to place digital billboards along Loop 101 to help generate revenue for the garage. They nixed the idea because of uncertainty about how soon the signs could go up.

The city continues to explore digital billboards as a future revenue generator. Officials are in the midst of public meetings and a survey about the billboards.

Mayor Bob Barrett, after a recent update on the project, said he's excited and hopes things come together.

"If all the kinks work out, this would be a great addition to Peoria," Barrett said.

Other project features

Rooftop lounge on a 155- to 175-room boutique hotel, with a pool and cabanas planned for the ground floor.